Over 90% of central banks trim duration as protection against inflation
Fewer institutions increased US Treasuries (18.75%), reduced exposure to unconventional assets (6.25%)
The vast majority of central banks reduced the maturity duration of their reserves portfolios in a bid to limit the impact of higher inflation. The Reserves Benchmarks 2022 find that 90% of the 33 participating central banks implemented this measure over the last year.
Lowering durations was much more used than other strategies employed to limit the fall in portfolio’s value. For instance, 18.75% of central banks report they have increased their allocations to US Treasuries. Just 6.25% of
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Over 15% of reserve managers plan diversification changes
Close to 14% of participants will increase diversification, while 17.2% are discussing changes
Fewer central banks added new reserve assets in 2023
Overall, 10.3% of institutions diversified their asset allocation, down from 18.6% last year
Wallstreet and others rank highest for reserves technology services
Ion’s Wallstreet treasury system tops the 2023 rankings
Reserve managers rank JP Morgan top for custody and banking
BlackRock preferred for knowledge transfer and capacity building
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